Tuesday, June 17, 2008

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Inflation-Subprime Impact on Singapore Economy by May 2008

Weakening signs ...
1. Forecast for economic growth down to 5.5% from 6%.
2. Unemployment up to 2% from 1.7%
3. Retrenchment rose to 2,274 in Q1 2008, higher than 1,966 in the previous quarter and 1,964 in the same quarter a year ago.
4. Forecast for Inflation up to 6% from 5%.

Still looking strong ...
Total employment grew by a record 73,200 in Q1 08, compared to 62,500 in Q4 07 and 49,400 in Q1 07.

The bigger worry, said economists, is inflation. The MAS survey reported this is likely to rise 6 per cent this year, at the top end of the Government’s forecast of 5 to 6 per cent.

The following news report shows that real wages have actually dropped:

Inflation erodes real gains in wages
WAGES here have risen by close to 11 per cent, the highest in almost a decade. But the impact of soaring food and fuel prices meant that for employees in manufacturing, transport and administrative jobs, their real wages - pay minus the effect of inflation - actually fell.

- Zakir Hussain Tue, Jun 17, 2008 The Straits Times

May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
Smart Buyers, 10 reasons to wait
Property Price Index Graph Plotter & Online Property Valuation


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The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.

Smart Buyer :)